(Figure: The Incidence of Tax and Elasticities) Use Figure: The Incidence of Tax and Elasticities. Each panel below shows the application of an excise tax that raises the price from P1 to P2. When a good or service is characterized by a relatively inelastic demand, as shown in panel _____, the greater share of the burden of an excise tax on it is borne by _____. 
A) C; buyers
B) C; sellers
C) D; sellers
D) D; buyers
Correct Answer:
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